The Euro declined heavily after topping near the 0.8860 level against the British Pound. The EUR/GBP pair traded below the 0.8800 and 0.8760 support levels to start a major downside move.
The pair even settled below the 0.8750 level and the 50 hourly simple moving average. The decline was such that the pair even broke the 0.8700 level and traded as low as 0.8696. At the moment, the pair is correcting higher and it could trade above 0.8710 on FXOpen.
However, there are many hurdles for buyers near 0.8725, 38.2% Fib retracement level of the last decline from the 0.8781 high to 0.8696 low, and a bearish trend line on the hourly chart at 0.8740.
Therefore, if there is an upside correction above 0.8710, EUR/GBP is likely to face a lot of sellers near the 0.8725 or 0.8740 resistance levels in the near term.
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